BRITISH SHIPPING

New Zealand Herald, Volume LXXII, Issue 22215, 16 September 1935, Page 9

BRITISH SHIPPING

HANDICAP FACED SUBSIDISED RIVALS SERVICES MAY BE CUT DOMINIONS AFFECTED By Telegraph—Press Association—Copyright (deceived September 15, 5.5 p.m.) LONDON, Sept. 14 "Unless some defence is afforded, the British passenger and mail service between Australia and San Francisco will be withdrawn within the next few months," said the Hon. Alexander Shaw, chairman and managing director of the P. and O. Steam Navigation Company and the British India Steam Navigation Company, at a dinner on board the new liner Strathmore on the occasion of her speed trials.

"There is no prospect of making ends meet under the present conditions," continued Sir Alexander, "and the owners have had to abandon hope of laying down new vessels. No one blames the American shipowners for taking advantage of the artificial economic conditions, due to the action of the American Government and the inaction of ours, but the Empire cannot tolerate foreign luxury liners threatening the very existence of British lines, the survival of which is an economic and strategic necessity. "British traffic between Australia and New Zealand also will be terminated unless shipping is speedily assured of fairer conditions. It is unfair to the Empire to allow timidity to rule its counsels while our heritage, the sea, is filched away. Foreigners cannot respect a sea-sundered Empire which allows its maritime interests to be 'kicked round the room' without protest. More Ships If Position Remedied

"American competition also threatens the link between Canada and Australia," said Sir Alexander. "Surely it is unthinkable that the Governments of the Dominions and Britain will allow the 'snuffing out' of three lines, which would result in economic embarrassment in times of peace and grave danger in times of war.

"Against the deadweight of foreign subsidies British efficiency fights in vain, and a continuation of the Government's inaction will mean unemployment in the shipbuilding and associated industries. This will involve far greater expenditure than the comparatively small sum required to allow British lines to meet State-fed competition. "Some quarters think that Britain is concerned only in one ocean. However, the Pacific is greater than the Atlantic, and our shipping interests there cannot be neglected. We are anxious not to embarrass the Empire Governments, but perhaps it is wrong not to proclaim the facts to the public, who will be the ultimate arbitrators.

"Once active steps are taken to remedy the situation in the Pacific, important orders will be given to British yards. Designs already exist : on paper. The Strathmor'e, which provided work for 3500 people for 18 months, is not merely a necessary replacement, but an act of faith in the Governments and the peoples of Britain and the Empire." Plea For Fair Competition * Sir Alexander described the vessel now being built for the Australian and New Zealand service as an act of faith in the Governments and peoples of those two Dominions. He said he was sure they would not let Britain down. Careful estimates showed that the industry could make ends meet under fair competition, but if the present conditions continued they would be a source of loss.

The Times, in welcoming the speech, refers hopefully to the forthcoming conference between Australia, New Zealand and the Matson Line. It says recent developments, especially the exposures in connection with the American mail contracts, justify the expectation that the chief subsidy-giving Governments will be less lavish. Britons need only be reminded that essential shipping services were still the mainstay of the national existence to ensure that they would demand measures to secure their maintenance.